FADA Predicts Strong Growth for Automotive Sector Amid Festive Season

Positive Outlook for Automotive Growth

New Delhi: The Federation of Automobile Dealers Associations (FADA) is optimistic about the automotive industry achieving double-digit growth in the current fiscal year. CEO Saharsh Damani expressed this confidence on Monday, citing sustained positive momentum since the GST rate reductions implemented last year.

In a discussion with a news agency, Damani highlighted that demand for passenger vehicles in rural areas is expected to surpass that in urban regions, with all automotive categories likely to excel during the upcoming festive season.

He noted, "The comparison of the last six months with the same period from the previous year shows a low base, which has contributed to remarkable growth in the initial half of this year. Following the GST 2.0 rate cut announced on September 22 last year, we are closely monitoring the growth trends after September 22 this year, as this will serve as a crucial indicator for the industry."

Looking ahead to the festive season and the second half of the financial year starting in October, Damani mentioned that the current positive trends are bolstering expectations for robust performance in the latter half.

"For the entire financial year concluding in March 2027, we are targeting a growth rate in the range of 9 to 12 percent, aiming for double-digit growth overall," Damani added.